It is bad to create a small population of creatures with humane values (that has positive welfare) and a large population of animals that are in pain. For instance, it is bad to create a population of animals with −75 total welfare, even if doing so allows you to create a population of humans with 50 total welfare.
Why do you believe this? I don’t. Due to wild animal suffering, this proposition implies that it would have been better if no life had appeared on Earth, assuming average human/animal welfare and the human/animal ratio don’t dramatically change in the future.
Arrow’s Theorem doesn’t say anything about strategic voting. The only reasonable non-strategic voting system I know of is random ballot (pick a random voter; they decide who wins). I’m currently trying to figure out a voting system that is based on finding the Nash equilibrium (which may be mixed) of approval voting, and this system might also be strategy-free.
When I said linear combination of utility functions, I meant that you fix the scaling factors initially and don’t change them. You could make all of them 1, for example. Your voting system (described in the last paragraph) is a combination of range voting and IRV. If everyone range votes so that their favorite gets 1 and everyone else gets −1, then it’s identical to IRV, and shares the same problems such as non-monotonicity. I suspect that you will also get non-monotonicity when votes aren’t “favorite gets 1 and everyone else gets −1”.
EDIT: I should clarify: it’s not 1 for your favorite and −1 for everyone else. It’s 1 for your favorite and close to −1 for everyone else, such that when your favorite is eliminated, it’s 1 for your next favorite and close to −1 for everyone else after rescaling.